It has been an excellent few years for investors in social media giant Meta Platforms (NASDAQ: META). Meta stock has grown by no less than 279% over the past five years.

That sort of growth certainly grabs my attention.

So, could now be the time to add Meta stock to my portfolio?

Strong position in a massive market

Meta owns a number of social media platforms that have extensive reach in a massive market, such as Instagram and Facebook. On top of that, it is trying to move forward in an evolving technology landscape with its investments in areas like augmented reality.

That part of its strategy remains to be proven. But the tried and tested social media business continues to be a big money spinner for Meta.

Last year, the business grew revenues by more than a fifth. Net income soared by 59% to $62bn.

The company’s current market capitalisation of $1.5trn may seem large, but those earnings help put it in perspective. Meta trades on a price-to-earnings (P/E) ratio of 24.

That does not look cheap to me, especially given last year’s strong growth in earnings. If that turns out to be a one-off rather than a new norm, the prospective P/E ratio is even higher.

But I reckon Meta has some assets that could help the business to perform well for decades to come.

For starters, it has a global installed user base in the billions. It also benefits from network effects, meaning that as users spend more time on platforms like Instagram, it becomes more attractive for other users, essentially leading to a virtuous circle.

Meanwhile, Meta continues to spend heavily on areas like generative AI. It remains to be seen whether these sorts of efforts outside its core business will be costly blunders or a master stroke of foresight.

If it goes well, that could be a spur for further growth in the value of Meta stock.

I won’t be buying in

That risk sits uneasily with me, especially as I feel the current Meta stock price offers me an insufficient margin of safety.

But it is not the only risk I see.

I reckon the halcyon days of social media are over and both users and regulators are now better understanding some of the harm it can cause. In that sense I see the social media industry now as akin to cigarettes in the 1960s. Over time, I expect it to become more heavily regulated, eating into profits for firms like Meta and also potentially leading to the breakup of very large networks.

I see Meta’s business as creating a lot of social harm alongside more positive aspects, so just as some people choose not to buy tobacco shares, I would not like to own Meta shares.

Even if I wanted to, the current valuation looks high to me. So, it is safe to say I will not be investing!

BP (LSE: BP) shares are once again in the thick of it, plunging almost 6% this morning as markets absorb Donald Trump’s ‘Liberation Day’ tariffs. Could this be an opportunity to snap up the FTSE 100 oil and gas giant at a reduced price?

Lots of things are falling today, including the oil price itself. Brent crude has slumped almost 5% to $70 a barrel, with traders on edge as the world enters unchartered waters.

If global trade slows, as most expect, demand for oil could slide, and BP’s price may follow. With so much bad news priced into the stock, it might surprise us all.

Can the FTSE 100 oil giant fight back?

The BP share price has been heading south since the highs of 2022, when Putin’s invasion of Ukraine sent energy prices surging. Now, it faces a new set of challenges as it makes an awkward reverse ferret on its green energy strategy.

BP is scurrying back to what it knows best: fossil fuels. The shift may make sense in the short term, given the unpredictability of green energy investments and the US political climate. But if renewables continue to advance, with costs falling and efficiency improving, BP could find itself stranded.

It’s swimming against the tide in the UK, as the Labour government blocks new North Sea exploration, and slaps windfall taxes on the oil BP does drill in UK waters.

However, the board has just finalised a deal with Iraq to redevelop several giant oil fields in Kirkuk, which include 3bn barrels of oil equivalent.

Investors remain wary, with CEO Murray Auchincloss under huge pressure to turn BP’s fortunes around. He’s cutting costs and capital expenditure, while looking to raise about £20bn from divestments, to continue driving down net debt.

Activist investor Elliott is stirring the pot, pushing for a break-up of the company. No doubt there will be more talk of a New York listing too. Or even a merger with Shell. Everything seems to be in play in today’s crazy upside down world.

But let’s get back to investment basics. BP still offers a generous income stream. The stock is forecast to yield 5.91% this year, rising to 6.1% in 2025. 

Dividends, buybacks, and worries

That’s an attractive payout in an uncertain market. However, investors should watch for signs that BP’s recent share buyback spree is slowing. 

The big question is where BP goes from here. The 16 analysts tracking the stock have a median 12-month target of just over 491p.

If that proves accurate, it would mark a gain of just over 20% from today’s price. Factor in the dividend, and the total return could top 25%.

As someone who recently took a position in BP, I’d take that. But most of those broker forecasts would have been produced before recent tariff turbulence, when markets still hoped Donald Trump might be good for the global economy.

For decades, BP was one of those shares that every UK investor felt they had to own, but all the hassles since the 2010 Deepwater Horizon disaster have shaken people’s faith.

I think the shares are still worth considering for investors looking to add fossil fuel exposure to their portfolio. But BP isn’t the surefire bet it used to be. I don’t think it’s a value trap, but I can’t say that for sure.

With talk about US trade tariffs dominating the news agenda, fresh news on the future of the Cash ISA has gone under the radar in recent days.

Whatever form they take, changes are almost certainly coming down the track, as new comments from the UK Chancellor Rachel Reeves suggest. And I think it could provide an opportunity for Britons to make significantly better returns over the long term.

Change is in the air

On Wednesday (2 April), Reeves affirmed her commitment to a shake-up of current ISA rules during discussions with the House of Commons’ Treasury Committee.

While Reeves said she recognises “the importance of cash for a lot of people“, she added that “I think reform would be worthwhile and that’s what we’re looking at at the moment“.

The Chancellor has spoken previously of boosting Britons’ appetite for investing in shares, giving the economy a boost while simultaneously providing individuals with a better return on their money.

While describing the tax benefits of the Cash ISA, Reeves added yesterday that “I do want to look at the balance [between saving and investing], because I think sometimes it’s a disservice to people saving“. She noted that when factoring in inflation, cash savers have in recent years experienced “erosion in the value of [their] savings in real terms“.

Best of both worlds

I hold a Cash ISA myself, so I’m hoping Chancellor Reeves resists radical changes to current rules. But then I also buy UK and overseas shares and other assets with a Stocks and Shares ISA and a Self-Invested Personal Pension (SIPP), so I can understand the logic behind her plans.

Just a quarter of people in the UK currently own shares versus around 60% in the US. As a result, millions of Brits are missing an opportunity to build a healthy nest egg for their retirements.

Let’s say someone invests £400 a month in a Cash ISA for 25 years. If they manage to secure a 4% interest rate over the period, they’d have £205,651 to show for it by the end.

Now let’s consider if they put £300 in a Stocks and Shares ISA and £100 in that Cash ISA instead. If they achieved a realistic average annual return of 8% on their share investments, they’d be sitting on a superior £336,720 across both ISAs.

Stock markets often experience periods of volatility, the kind of which we’re currently seeing. But over time, they’ve proven an excellent way for investors to build wealth.

Reducing risk

While buying shares is riskier than holding cash, individuals can reduce this by investing in trust and funds (I own several in my own portfolio).

Take the iShares FTSE 250 ETF (LSE:MIDD). This exchange-traded fund (ETF) spreads investors’ capital across hundreds of UK mid-cap shares like Direct Line, ITV, and Currys.

This in turn can substantially reduce the impact of company- and/or industry-specific problems on an investor’s overall returns.

Over the last 21 years, this FTSE 250 has delivered an average annual return of 8%. Its focus on UK shares means it offers less diversification that more global funds. But I still think it would be worth a close look today.

While I believe cash plays a vital role in any portfolio, I believe riskier assets like shares, trusts, and funds should also be considered as part of any retirement savings plan.

I wonder if 2 April will go down in investing folklore? It’s the day President Trump revealed his sweeping import tariffs. And it kicked off a share price rout the following day that made a lot of our favourite dividend shares look even more tempting.

I say rout, as that’s what the headlines suggest. The FTSE 100 is down 115 points at the time of writing, about 1.3%. And it’s still up 7% over 12 months.

10% dividend yield

Some big dividend shares fell harder, with Phoenix Group Holdings (LSE: PHNX) losing 4.9% as I write. But that helped push the forecast dividend yield, previously at 9.5%, to 10%.

Phoenix acquires and manages closed life assurance and pension funds. And it operates mostly in the UK. I don’t see how US import duties are likely to affect that business or the ability to pay dividends.

Still, anything that shakes the stock market tends to impact the financial sector. Banks and insurance stocks across the board have lost ground.

Anything new?

Investors thinking of buying Phoenix Group shares face risk. After all, no potential 10% return is going to be close to risk-free.

The biggest danger might be that the company really needs to keep finding new closed businesses to acquire and manage if it’s to grow. Or alternatively, maybe it could move into still-active businesses. The weak five-year share price performance shows investors have concerns.

However Phoenix moves forward, CEO Andy Briggs was still confident at FY 2024 results time in March. He spoke of growth momentum, cash generation, and “sustaining our progressive dividend for shareholders“.

I really don’t see how anything has changed.

Big faller

Mondi (LSE: MNDI) was another of the FTSE 100’s biggest fallers on the day after tariff day. As I write, it’s down 6.7%. But again that boosted the forecast dividend, this time from 5.0% to 5.3%.

At least with Mondi, its business is in some way related to import and export. At least, it makes paper and packaging products. And if international trade falls, maybe it’ll sell less.

The share price has had a tough few years too, now down close to a 10-year low.

Bullish analysts

Against the negatives, broker forecasts are upbeat. We’re looking at a forecast price-to-earnings ratio of around 10 over the next few years, which seems modest for a 5.3% dividend. Debt is predicted to rise sharply in 2025, which is a worry. But that’s expected to be the peak, followed by a decline.

The City folk still see the dividend growing progressively after 2025. That, however, is after a slight dip on the cards for the current year.

Still, despite the market’s apparent bearish take on the packaging business, at FY time in February CEO Andrew King said “we are currently seeing improving order books across our packaging businesses and are implementing price increases across our range of packaging paper grades“.

For anyone considering either of these two stocks (which includes me), I really don’t think much has changed. Except they’re cheaper now.

Could this be the year that everything suddenly goes right for Taylor Wimpey (LSE: TW) shares? Possibly. But it would require a dramatic reversal in fortunes.

Shares in the FTSE 100 house builder have fallen by a third in the last six months, and are down 20% over 12 months to trade at a 52-week low.

Can we blame Donald Trump, as global stocks sell off due to his trade tariffs? Not directly, as Taylor Wimpey isn’t building condos in Miami. However, UK housebuilders seem to be caught in the crossfire of every major political or economic change.

They crashed 40% after the Brexit vote, were up and down in the pandemic, and have struggled through the cost-of-living crisis. Now they’re under pressure again as inflation proves sticky and mortgage rates stay higher for longer than markets hoped.

They also have their own sector-specific worry, due to an ongong Competition and Markets Authority investigation into claims they exchanged “competitively sensitive information” potentially leading to price collusion. If they are found guilty, that could prove costly.

Even hopes that Labour might inspire a housebuilding boom haven’t lifted the shares, perhaps because a surge in supply could push prices down.

Personally, I doubt that will happen. Labour’s plan to build 1.3m homes in five years looks wildly optimistic, while the UK population is still growing fast. The real question is whether people can afford new-builds at all, given weak economic growth and high borrowing costs.

Taylor Wimpey’s latest results from 27 February showed 2024 revenues down 3.2% to £3.4bn and pre-tax profits plunging 32.4% to £320.3m.

The number of homes built fell to 10,593 from 10,848, and the average selling price dipped from £370,000 to £356,000.

Incredible dividend yield

Taylor Wimpey also has to swallow the hiking employers national insurance contributions from this month, plus the inflation-busting 6.7% minimum wage increase. Sticky inflation will also push up material costs, while skilled labour shortages add another headache.

All this has left the shares looking cheap. They trade at just 12.64 times earnings and come with a bumper forecast dividend yield of 8.85% for 2025. The company boasts a solid balance sheet and a strong track record of rewarding shareholders, with a policy to return 7.5% of net assets (or at least £250m annually) in dividends.

The 16 analysts covering the stock produce a median 12-month price target of 145.8p. If that proves accurate, it would be a juicy rise of almost 36% from today’s price. Throw in the yield, and the total return could be around 45%.

Since I hold the stock, I’d happily take that. But I think it looks optimistic.

The real game-changer would be falling interest rates. Cheaper mortgages would make homes more affordable and could spark a fresh wave of demand. But there’s no telling when that will happen. Trade wars could keep inflation stubbornly high, delaying cuts. Or they could hammer economic growth, forcing central banks to act sooner. Either way, when rates do drop, Taylor Wimpey’s fat dividend yield will look even more attractive.

That’s an exciting prospect, but a lot has to go right for it to happen. I’m retaining my shares and my optimism, but history shows housebuilders often look like a bargain, when they might just be a value trap.

The Glencore (LSE: GLEN) share price has had a torrid time as of late. So far this year it’s lost a quarter of its value and is down 40% in a year. Tariffs might be hitting global stock markets, but I think most investors are missing a trick here as tariffs are likely to be very beneficial to this commodities trader.

Copper prices surging

Last Monday (31 March) copper prices in the US surged to an all-time high. In 2025, the price of the red metal in the US is up 25%. However, on the London Metals Exchange (LME) prices are up less than half that amount.

Prices in the US and on the LME almost always move in lockstep. The reason for the difference is that US manufacturers and suppliers are pre-empting import taxes from the US administration and are moving to shore up their supplies.

What is happening here has all the hallmarks of what has been unfolding with gold recently. Buyers desperate for the physical stuff have been raiding London and New York vaults.

Arbitrage opportunities

This kind of dislocation in markets is what Glencore thrives on. It has an unparalleled marketing division that is able to profit from volatility in commodity prices.

The price discrepancy for copper in different geographic locations is creating significant arbitrage opportunities for the business, upon which it is able to generate a fee.

In fact, I believe that tariffs, the threat of future tariffs, and the possibility of all-out global trade war may not be good for long-term global growth, but in the short term they are likely to turn out to be very profitable for its marketing division. And it just doesn’t trade copper, but a basket of commodities.

Copper deficit coming

I remain firmly convinced that a copper deficit is coming in the future and can only lead to one thing: significantly higher prices.

Copper is used in the manufacturer of virtually any product one can think of, including mobile phones, traditional automobiles, and construction. But demand is also coming from new facets of the economy such as renewables, EVs, electricity grid infrastructure expansion, data centres, and AI.

Glencore estimates that supply needs to increase by about 1m metric tonnes a year out to 2050 to meet the surge in expected demand. Given the amount of known copper reserves from existing mines, a demand shortfall is a given.

Risks

The business made a loss of £1.6bn in 2024. A huge chunk of this was down to record low treatment and refining charges for copper and zinc concentrates, hitting its smelting operations.

This remains an ongoing issue. The miner is now in the process of shutting a significant portion of its smelting operations across the globe, in order to stem the losses.

However, I still believe that Glencore represents one of the best opportunities in the FTSE 100. The inner mechanics of its marketing division may be a closely guarded secret, but it has a history of becoming a cash cow in periods of heightened commodity volatility. One only has to look at 2022 for evidence of that. Its share price could fall further, but I intend to add to my position as soon as my finances allow.

Cheap shares can power our portfolios forward. So, let’s have a look at two companies that could be fundamentally undervalued by the market and may experience supportive trends from the emerging macroeconomic environment.

Pawn shops

EZCORP (NASDAQ:EZPW) could be an intriguing investment opportunity. The company operates in the pawn industry, which typically performs well during economic uncertainty.

With Trump’s tariffs and recession risks potentially growing, demand for pawn services may rise as consumers seek alternative financing options. EZCORP’s strong fiscal 2024 performance, including record revenues and a 20% increase in adjusted diluted earnings per share (EPS), highlights its resilience and growth potential.

The stock appears to be priced attractively, with a price-to-earnings (P/E) ratio of 13.7 times for 2024, dropping to an estimated 9.2 times by 2028. This is significantly lower than the index average, suggesting undervaluation.

In line with this, consensus EPS growth rates are solid, with a projected increase of 15.62% by September 2025 and steady growth thereafter. The company’s expansion into Latin America also provides diversification and growth opportunities.

However, like any investment, risks remain. EZCORP has a high net debt position, with $569.3m in total debt against $174.51m in cash. This leverage could limit financial flexibility.

For patient investors, EZCORP may offer a compelling mix of value and growth, especially during economic turbulence. It’s actually a stock I’ve recently added to my portfolio.

A cheap European airline

I keep banging on about Jet2 (LSE:JET2) at the moment. But I’m a big fan of the stock. It’s currently trading at an enterprise value-to-EBITDA (earnings before interest, taxation, depreciation, and amortisation) ratio of 0.85, with some of its peers trading at a 400% premium to this. It’s got a lot of cash — £2.3bn in net cash — providing financial flexibility.

Of course, there are risks. The company faces rising costs, including higher wages, National Insurance contributions, and sustainable aviation fuel mandates, which could pressure margins. However, I’m willing to overlook some of these due to its incredibly strong relative valuation.

What’s more, I believe we may see some supportive trends in fuel prices. Aviation fuel typically represents around 25% of costs for airlines, and thankfully, fuel prices have retreated a lot from their highs. This impacts lower margin airlines and tour operators like Jet2 more than others. Brent crude prices sank after Trump’s tariffs. This may boost earnings slightly through the coming quarters — although the company does hedge this cost, like its peers.

Investors will want to keep an eye on its fleet transformation programme. Jet2 has committed to replacing older aircraft with up to 146 Airbus A321neo planes. This will offer increased operational efficiency. What’s more, the business plans to maintain annual capital expenditure at £833m. As a ratio, this sits below industry averages.

It’s a stock I’ve been topping up on. It might be low on momentum, but it’s my favourite UK stock right now.

Income investors are always on the eye out for high-yielding dividend stocks, particularly those on the FTSE 100. These blue-chip stocks typically have a solid balance sheet and high cash flow, making dividends more reliable. So when a new stock took top spot for yields on the index, I had to check it out.

A big yield

Global investment manager M&G (LSE: MNG) recently moved above Phoenix Group to secure its spot as the highest-yielding stock on the Footsie. In late March, Phoenix fell below 10% for the first time in a month as its share price rose sharply.

Now, M&G’s experienced the opposite — a sudden price dip that sent its yield soaring. It also recently announced its final year dividend, up 2% from last year. Together, those factors typically make for a compelling investment case: a low price and high yield.

But there may be more to the story.

A dividend newcomer

The problem with dividends is that they’re never guaranteed and can be cut or reduced at any time. Currently, M&G looks attractive because its paying 20.1p on each £1.99 share. But dumping that much cash on shareholders every year comes at a high cost — and when money gets tight, dividends can get cut.

That’s why it’s critical to check a company’s track record when shopping for dividend stocks. Companies that adhere to a strict dividend policy typically have at least 10 years of solid growth with no cuts.

Being a relatively new company, M&G only has a six-year history of dividend growth. I wouldn’t write if off completely — every top dividend payer has to start somewhere — but it makes it harder to trust.

So let’s see if it can maintain that growth.

Risk and figures

A key issue M&G is facing lately is customer outflows, which amounted to £1.9bn in the latest 2024 results. That’s in stark contrast to the inflows of £1.7bn enjoyed the year before.

This may partly be because many of its pension fund clients are rebalancing capital from stocks into bulk purchase annuities (BPAs). This trend is driven by stubbornly high inflation amid an improving economy. If M&G can’t gain more exposure to this market, it may suffer further outflows.

Yet it still managed to report a 5% increase in operating profit in 2024 and reiterated its dedication to shareholder returns. It also increased guidance for 2025, raising its cumulative savings target by 15% from £200m to £230m.

With that kind of confidence, I’d expect better analyst ratings, but the average 12-month price target is only 233p — a 16.7% rise. Still, JP Morgan put in an Overweight rating on the stock last week with a price target of 275p. That would equate to almost a 50% capital gain when adding in dividends. Not a bad return!

So despite the risks, I think M&G’s a stock worth considering for passive income in 2025. A yield above 10% is a rare find on the FTSE 100, particularly when backed by a company with promising growth potential.

Stock markets are a sea of red after President Donald Trump announced his package of sweeping trade tariffs. The FTSE 100 leading index of UK stocks was last 1.4% lower on Thurday (3 April), as traders contemplated a possible global recession.

Few had expected these ‘Trump Tariffs’ to be so severe. China’s additional tariff of 34%, for instance, now means that total US import taxes are above 50% from where they had been a few months ago.

More market weakness may lie ahead as the full economic impact of these new tariffs becomes apparent. It’s a story that could run and run if (as many expect) last night’s announcement leads to full-on worldwide trade war.

3 top FTSE stocks

Investors clearly need to consider this possible new era of protectionism when building their portfolios. It’s a challenge the global economy hasn’t faced for decades, leaving the earnings projections for swathes of stocks looking more than a little fragile.

With this in mind, here are three FTSE 100 shares I think are worth serious consideration in the current climate.

1. Coca-Cola HBC

With its focus on Africa and Europe, Coca-Cola HBC (LSE:CCH) doesn’t have to sweat about disruption from its products entering and exiting the US. In fact, its geographic footprint has been attractive to me as an investor long before the trade war threat emerged.

The drinks bottler’s products can be found in almost 30 countries, providing it with excellent diversification. What’s more, these are a mix of established, emerging and developed economies, providing a tasty blend of profits stability and growth potential.

Coca-Cola HBC could still suffer if a global boycott of US brands kicks in. However, I’m optimistic the robust brand power of its drinks (like Coke, Fanta and Schweppes) will limit any damage.

The company’s 6.8% share price rise over the past month illustrates its credentials as a lifeboat in these uncertain times.

2. National Grid

Utilities like National Grid are classic safe havens when times get tough. Electricity demand remains stable regardless of any economic, political or social challenges that come along. This will remain the case regardless of any trade war escalation.

Yet it’s important to say the company isn’t immune to risk-related tariffs. Any pick-up in inflation, and subsequent raising in interest rates by the Bank of England, would still be a drag on earnings.

But on balance I think it’s an attractive buy. And especially as the green energy transition still provides it with enormous long-term earnings potential.

3. Fresnillo

Precious metals producers like Fresnillo could be the ultimate safe-havens to consider today.

Silver and gold prices are up 28.1% and 38.6%, respectively, over the past year. And I don’t think their race is run yet, with thumping US tariffs (and the potential for heavy reciprocal action) adding to existing fears over returning inflation and global growth.

That’s not to say Fresnillo’s profits are guaranteed to blast off, given the highly challenging nature of metals mining. But its swathe of working mines across Mexico may help to reduce this risk for investors.

Investors looking for passive income should want steady stock markets and calm economic waters, right? I say no!

Market upheavals can offer some of the best times to snap up shares in high-quality companies at bargain prices. And we’re having one now, with the FTSE 100 down 120 points at the time of writing on 3 April in response to President Trump’s global trade upheaval.

It’s likely that we won’t really know the real effect of the Trump tariffs until well after he’s out of office. And that reminds me of when Margaret Thatcher famously exclaimed that “if you try to buck the market, the market will buck you.”

What crisis?

It was back in 1992 and she was specifically talking about… well, it doesn’t really matter. We’ve long forgotten about whatever was shaking up politicians back then. Markets shrugged it off and have kept on doing what markets do.

In the case of stock markets, that’s climbing. The FTSE 100 is worth three-and-a-half times what it was then. And we’ve had 33 years of dividends on top.

The same will surely be true of Donald Trump and his tariffs. If they work, great. If they don’t, they’ll surely be discarded and markets will move on. Upwards if history means anything.

Cheaper today

HSBC Holdings (LSE: HSBA) has long been a favourite for passive income. When the London Stock Exchange closed on 2 April, hours ahead of tariff showtime, HSBC was on a forecast dividend yield of 5.8%. With the share price down 6% at the time of writing, that’s now up to 6.1%.

It suggests the new trade environment will adversely affect the bank’s ability to pay its dividends. But I’m finding it hard to see how US import levies can do much lasting harm to a multinational banking giant. Especially one focused mainly on the Chinese economic sphere.

But then, UK-listed banks in general are down. Barclays has fallen 5.5%. Even the wholly UK-focused Lloyds Banking Group has lost 2.4%. When big investors are spooked for whatever reason, they sell bank stocks.

Dan Coatsworth at AJ Bell said “it seems as if fewer investors want to own banks despite many paying generous dividends which can provide comfort during rocky market conditions.”

Dividend outlook

When HSBC posted 2024 full-year results in February, there was enough cash for a £2bn share buyback. That was on top of lifting the full-year dividend by 43%. The bank said it intends to keep its dividend payout ratio at 50%. And with forecasters predicting a 24% rise in earnings per share (EPS) between 2024 and 2027, I’d say the passive income prospects look good.

There’s still a risk that banks will suffer from some of the tariff fallout. In fact, I think that’s probably almost certain.

But HSBC Holdings looks better value to me today, with a forward price-to-earnings (P/E) ratio of only nine. It’s near the top of my list of shares to consider for the new ISA year.